Methods and systems for executing a plurality of money transfers having a fluctuating parameter

ABSTRACT

Systems and methods are provided for executing a plurality of money transfers, at least one term of which is dependent on the value of a fluctuating parameter, for example a currency exchange rate or the amount of a transaction service fee. The customer may stage a first money transfer at a money-transfer system and a first value of the fluctuating parameter may be determined by a host processor. The first money transfer may then be executed by the money-transfer system using the first value of the fluctuating parameter and a unique lock-in value identifier may be stored in the host processor&#39;s memory that associates the first value of the fluctuating parameter with the customer. When the customer stages a second (and any subsequent) money transfer at the money transfer system, a second value of the fluctuating parameter may be determined by the host processor. The first value of the fluctuating parameter may be retrieved from the host processor&#39;s memory using the lock-in value identifier and, in one embodiment, a determination may be made as to whether the first value or second value is more favorable to the customer for executing the second money transfer. The second money transfer may then be executed using the more favorable value of the fluctuating parameter. In one embodiment, the customer may be notified of the savings realized. 
     In some embodiments, the second money transfer may be made using the first value of the fluctuating parameter without making a determination as to whether it is more favorable than the second value. In other embodiments, a unique customer identifier, e.g. a loyalty program ID number, may be used to identify the customer as a repeat customer, and the customer identifier may be used to retrieve the lock-in value identifier. In another embodiment, the customer may be required by the money-transfer service provider to pay a lock-in fee or currency spread, all or a portion of which may be used to offset part of any service fees paid by customer for repeat money transfers. In still another embodiment, the risk associated with using the more favorable value of the fluctuating parameter may be hedged by the service provider.

BRIEF SUMMARY OF THE INVENTION

The present invention relates generally to money transfers and othervalue transfer transactions. More specifically, the present invention isdirected to methods and systems for executing a plurality of moneytransfers at least one of the terms of which involves one or moreparameters that fluctuate over time.

The process of transferring money is well-known. Briefly, a senderpresents himself at a location of a financial transaction serviceprovider and provides value, usually cash, to be transferred by theservice provider to a recipient for a transfer fee paid to the serviceprovider. Transaction information is entered into a record that isreceived by a money transfer system. The record includes informationthat identifies the sender, the recipient, and the amount of money beingtransferred, among other things. The recipient presents himself to areceive site of the service provider or representative to obtain thetransferred money or other value. An attendant at the receive siteusually verifies and records the identity of the receiver and gives thereceiver the value.

The cost of each money transfer to the customer may be dependent on thevalue of at least one parameter that fluctuates over time. As oneexample, money transfers involving different currencies, e.g.cross-border transfers wherein the country in which funds are suppliedby the customer is different than the country in which the funds arereceived by the recipient usually involve the conversion of the fundsfrom one currency to another. The exchange rate (also known as theforeign-exchange rate, forex rate or FX rate) between the two currenciesspecifies how much one currency is worth in terms of the other. Forexample an exchange rate of 120 Japanese yen (JPY, ¥) to the UnitedStates Dollar (USD, $) means that JPY 120 is worth the same as USD 1. Amarket-based exchange rate will fluctuate over time and changes wheneverthe values of either of the two component currencies change. Frequentlyin a cross-border transfer, the sender's funds are converted to therecipient's funds using the exchange rate in effect at the time of thetransfer. Up-to-date exchange rates are readily available at any pointin time, for example, through various financial institutions,publications, on-line services, etc. As another example, the serviceprovider may charge the customer a transfer fee that fluctuates fromtime to time based on provider costs, market conditions, competitivefactors, etc. As a further example, the service provider (or anotherforeign exchange provider) may make a foreign currency available to thecustomer at a retail price different than the wholesale price that theservice provider can purchase the foreign currency (herein “currencyspread”), and the amount of the currency spread may fluctuate from timeto time.

For some businesses, the most effective way to manage the riskassociated with fluctuating cost parameters, such as exchange rates inmoney transfers, is to implement a derivative contract such as a futurescontract or an option contract that enables the business to lock into aspecific value for the parameter. However, the derivatives market hasdeveloped a great deal of complexity, and relatively few individualconsumers and small businesses can make practical use of the underlyingderivatives as a mechanism for managing costs in a predictable way.Similarly, high-volume customers may also take advantage of contractswith a service provider that fix transaction costs, e.g. money transferfees, for a particular period of time or for a specified number oftransactions. However, an individual consumer or small business may notbe involved in the large number of transactions that typically arerequired to negotiate such contracts. On the other hand, a serviceprovider may want to provide an incentive for smaller customers to usethe service provider for repeat transactions by fixing the costs forthose transactions, but the service provider is unwilling or unable tonegotiate separate contracts with each individual customer.

Accordingly, there is a general need for a convenient means forlocking-in one or more of the fluctuating parameters that may beassociated with many money transfers, for example money transfersinvolving different currencies.

BACKGROUND OF THE INVENTION

Embodiments of the present invention provide methods and systems forexecuting a plurality of money transfers wherein at least one term ofthe money transfers is dependent on the value of a parameter thatfluctuates from time to time, such as a currency exchange rate or atransaction service fee. A money-transfer system may be provided toexecute the money transfers. The system may comprise one or moreterminal devices adapted to input money transfer information from acustomer and/or receive the transferred funds at a receivingdestination, a host processor with associated memory adapted to processthe money transfer and money transfer information, and a money-transfernetwork adapted to provide a communications interface between theterminal devices and the host processor. The host processor may beconfigured to perform steps comprising the method of the presentinvention.

In one embodiment of the invention, a method for executing a pluralityof money transfers comprises receiving information from a customer atthe money-transfer system to stage a first money transfer at least oneterm of which is dependent on the value of a fluctuating parameter,determining a first value for the fluctuating parameter at a first pointin time, and executing a first money transfer using the first value ofthe parameter. A unique identifier that associates the first value ofthe fluctuating parameter with the customer (“lock-in value identifier”)may be stored in the host processor memory for future retrieval by thehost processor. Subsequent to the first money transfer, a second moneytransfer may be staged by or on behalf of the same customer (“the samecustomer”), wherein the terms of the second money transfer are alsodependent on the same fluctuating parameter. A second value of thefluctuating parameter may be determined at a second point in time, andthe first value of the fluctuating parameter may be retrieved from thehost processor memory using the lock-in value identifier.

In one embodiment, using the host processor, a determination may be madeas to whether the first value or the second value of the fluctuatingparameter is more favorable to the customer for executing the secondmoney transfer. The second money transfer is then executed through themoney transfer system using the more favorable value of the fluctuatingparameter. The customer may make any number of subsequent moneytransfers using the process of the invention and be assured that thevalue of the fluctuating parameter used to execute each subsequent moneytransfer will be no less favorable than the value of the parameter usedin the first money transfer. In some embodiments, the customer isnotified of the amount of benefit realized by using the more favorablevalue of the fluctuating parameter to execute the second money transfer.Notification can occur at the time the money transfer is sent or at somelater point in time (e.g., after the money has been received).

In another embodiment, information related to a money transfer may bereceived from a customer at the money system, wherein at least one ofthe terms of the money transfer is dependent on the value of afluctuating parameter. A current value may be determined for thefluctuating parameter and a determination may be made as to whether ornot the money transfer is a repeat transaction for the customer. If themoney transfer is not a repeat transaction, a lock-in value identifiermay be stored in the host processor's memory that designates the currentvalue of the fluctuating parameter as the lock-in value of thefluctuating parameter for repeat transactions of the customer. If themoney transfer is a repeat transaction of the customer, the lock-invalue identifier is retrieved from the host processor's memory and adetermination is made whether the lock-in value is more favorable thanthe current value. If the lock-in value is more favorable, the moneytransfer is executed using the lock-in value, whereas if the lock-invalue is not more favorable, the current value is used. In someembodiments, the customer may be given the option of using the lock-invalue of the fluctuating parameter for repeat transactions, withoutdetermining whether the lock-in value is more favorable than the currentvalue.

In some embodiments, a unique “repeat customer identifier”, e.g. acustomer's loyalty program identification number, may be used toidentify a repeat or otherwise preferred returning customer. Theinformation related to the money transfer provided by the customer maybe searched for the repeat customer identifier to determine whether themoney transfer is a repeat transaction of the customer. If the repeatcustomer identifier is not found, i.e. if the money transfer is not arepeat transaction, a repeat customer identifier may be stored in thehost processor's memory in association with the lock-in value identifierto be used in subsequent money transfers. If the repeat customeridentifier is found, i.e. the money transfer is a repeat transaction,the repeat customer identifier may be used to retrieve the lock-in valueidentifier from the host processor's memory.

In another embodiment, the information received from the customer inconnection with the first money transfer may include the specificationof an amount of money to be transferred, a first currency in which thefunds are to be provided by the customer and a second currency in whichthe funds are to be received at the receiving destination. A firstcurrency exchange rate between the first and second currency may bedetermined, the appropriate amount of funds may be collected from thecustomer in the first currency and the funds may be converted to thesecond currency based on the first exchange rate. In addition, a repeatcustomer identifier that identifies the customer as a repeat customer,and a lock-in exchange rate identifier that associates the firstexchange rate with the repeat customer identifier may be stored in thehost processor's memory. The converted funds may then be transferred tothe receiving destination using the money transfer system.

Information related to a second money transfer, including the repeatcustomer identifier, may be received at the money transfer system fromthe customer for a second money transfer involving the first and secondcurrencies, and a second currency exchange rate (“current exchangerate”) may be determined. The repeat customer identifier may be used toretrieve the associated lock-in exchange rate identifier from the hostprocessor. The host processor may determine whether the first exchangerate represented by the lock-in exchange rate identifier or the currentexchange rate is more favorable to the customer for executing the secondmoney transfer, the appropriate amount of funds may be collected fromthe customer in the first currency and the funds may be converted to thesecond currency using the more favorable exchange rate. The convertedfunds may then be transferred to the receiving destination using themoney transfer system. In one embodiment, the foreign exchange riskassociated with the lock-in exchange rate may be hedged by themoney-transfer service provider.

In another embodiment, a first amount of a service fee may be determinedfor executing a first money transaction having certain terms. A uniqueidentifier may be stored in the host processor's memory that associatesthe first amount of service fee with the customer (“service fee lock-invalue identifier”), as well as other terms of the first money transfer,if desired. The first service fee amount may be collected from thecustomer for executing the money transfer using the money transfersystem. In subsequent money transfers having substantially the sameterms, a second amount of service fee charged for the subsequent moneytransfer may be determined. The first amount charged for the service feemay be retrieved from the host processor's memory using the service feelock-in value identifier. The host processor may then determine whetherthe first service fee amount or the second service fee amount is morefavorable for the subsequent money transfer, and the more favorableservice fee may be collected from the customer for executing the secondmoney transfer. In other embodiments, a similar method may be used toprovide a repeat customer with the more favorable currency spread forthe subsequent money transfer, or a discount may be provided to a repeatcustomer based at least in part on the difference between a firstcurrency spread associated with first money transfer and a secondcurrency spread associated with the second money transfer.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic illustration of a money transfer system suitablefor implementing the method of the present invention;

FIG. 2 is a block-diagram representation of one embodiment of method forexecuting a plurality of money transfers by the same customer inaccordance with the invention, each money transfer having the samefluctuating parameter;

FIG. 3 is a block-diagram representation of another embodiment of amethod for executing a money transfer involving different currencies inaccordance with the invention; and

FIG. 4 is a block-diagram representation of still another embodiment ofa method for executing a plurality of money transfers in accordance withthe invention wherein the customer is charged a service fee.

DETAILED DESCRIPTION OF THE INVENTION

Although the present invention will now be described in detail primarilyin the context of money transfers, other types of financial transactionsmay also benefit from the teachings herein. Thus, it is contemplatedthat transactions to which the present invention applies may includemoney order purchases and/or redemptions, traveler's check purchasesand/or redemptions, money wiring transactions, loans, investmentaccounts, deposit accounts, and the like.

A money-transfer system 100 that may be used to effect money transfersin accordance with the invention is illustrated by the block diagram ofFIG. 1. The money transfers may be effected through a money-transfernetwork 101 that provides a communications interface between variousterminal devices that may be used to initiate money transfers and toreceive funds transferred in this manner. For example, localmoney-transfer processors 102-1 and 102-2 may be provided at variousgeographical locations and used to operate money-transfer terminaldevices 103 a-d and 103 d-f respectively, with each of themoney-transfer processors 102 being interfaced with the money-transfernetwork 101. In such instances, the processors 102 and terminal devices103 are generally disposed at a physical location that operates as amoney-transfer office, which a customer may visit physically to arrangefor funds to be transferred.

A customer may arrange for funds to be transferred and pay any feescharged by the service provider, using any suitable means oftransferring value that currently exists, or is hereafter created Forexample, the customer may provide funds in cash or by check, or use acredit card or account, a debit card or account, an automated clearinghouse, a stored-value card, and the like.

When a customer physically visits a money-transfer office, a clerk mayoperate one of the terminal devices 103 to provide information used ineffecting the money transfer. Alternatively, the terminal devices 103may comprise a self-service terminal operated by the customer herself instaging the money transfer. Similarly, such a physical location may beused by the recipient to receive the transferred funds withclerk-operated or with self-operated terminal devices 103 to receive thefunds. In embodiments where the money transfer involves the exchange ofdifferent currencies, the physical locations of the initiating andreceiving processor 102/terminal device 103 may typically be indifferent countries.

Money transfers may alternatively be staged using other types ofinterfaces with the money-transfer network 101. As shown in FIG. 1,money-transfer network 101 may be interfaced with the Internet 104,which may in turn be interfaced with various computational terminaldevices 105. This arrangement permits a customer to accessmoney-transfer functionality by connecting his computational terminaldevice 105 to the Internet 104 to access a web page where suchfunctionality is implemented. With such an interface, the customer willusually provide funds for transfer by using a credit card or account,debit card or account, an automated clearing house, stored-value card oraccount, or similar mechanism that may be implemented electronically,instead of by providing cash. Other types of terminal devices may beprovided with the money-transfer network 101 in various alternativeembodiments, including terminal devices with telephone interfaces(including IVR/VRU and those that respond to DTMF tones), cableinterfaces, wireless interfaces, ATM's and the like. For example, one ormore of terminal devices 103 or 105 may provide mobile access to moneytransfer system 100. For example, terminal device 103 or 105 may be acell phone, laptop computer, personal digital assistant, or similarmobile device using mobile telecommunication, voice and/or data.

A host processing system 106 comprising host processor 107 andassociated memory 108 may process the money transfer and money transferinformation, as well as maintain records related to money transfersystem 100. Host processing system 106 may also comprise other hardwareelements, for example, input devices, output devices, storage media,storage media readers, special purpose processors, communicationdevices, etc. Host processing system 106 may be provided incommunication with a number of other elements of money transfer system100. For example, money transfer processors 102 and the Internet 104 maybe linked with processor 107 through communications links in moneytransfer network 101. The communications links may be electrical,optical, wireless, or any other type of communications link known tothose of skill in the art. Host processor 107 may comprise softwareelements configured to implement methods of the present invention andmemory 108 may include any suitable data storage media, e.g. remote,local, fixed and/or removable storage devices plus storage media fortemporarily and/or more permanently containing computer-readableinformation. It will be apparent to those skilled in the art that othersubstantial variations may be made in money transfer system 100 inaccordance with the specific requirements.

The flow diagram of FIG. 2 provides a general overview of a process 200that may be used for executing a plurality of money transfers usingmoney transfer system 100 in accordance with the invention. A firstmoney transfer may be initiated at block 201 with the customer visitinga money-transfer site of money transfer system 100, either by visiting aphysical site where there is access to a money-transfer terminal device103 or by visiting a virtual site such as where the money transfer isinitiated from a web site over the Internet 104. At block 202,information may be received from the customer at money-transfer system100 to stage the first money transfer. The information may include thespecification of the usual terms of a money transfer, e.g. the amount ofmoney to be transferred, the identity of the customer, the identity ofthe recipient of the money transfer, the location to which the money isto be transferred, etc., and at least one term that is dependent on thevalue of a parameter that fluctuates from time to time (“fluctuatingparameter”). As will be described in connection with other embodimentshereinafter, examples of a fluctuating parameter may include a currencyexchange rate, a service fee, an interest rate, currency spread, etc.

At block 203, a first value of the fluctuating parameter may bedetermined at a first point in time, e.g. at the time the first moneytransfer is staged at block 202, at the time the funds to be transferredin the first money transfer are collected from the customer, at the timethe funds are transferred in the first money transfer, at the time thefunds are picked up by the recipient, or at any other time related tothe first money transfer, e.g. a time that is mutually agreed upon bythe customer and the money-transfer service provider, or a time that isset internally by the money-transfer service provider. The first valueof the fluctuating parameter may be input into money-transfer system 100manually at the money-transfer site, e.g. using money-transfer terminaldevice 103, or may be acquired by money-transfer system 100, e.g.through access by host processor 107 to a database stored in memory 108or available on-line, from a service that monitors the fluctuatingparameter and provides periodic values to the money-transfer serviceprovider, or from the Internet 104 or other source that monitors thevalue of the fluctuating parameter.

At block 204, host processor 107 may be programmed to store a uniquelock-in value identifier in host processor memory 108 that associatesthe first value of the fluctuating parameter with the customer, i.e.locks in the first value of the fluctuating parameter for considerationin subsequent money transfers of the customer. In some embodiments, aunique identifier that identifies the customer as a repeat or returningcustomer (“repeat customer identifier”) may be associated with thelock-in value identifier when the lock-in value identifier is stored inthe host processor's memory. The lock-in value identifier may comprisecomputer-readable code that can be used by host processor 107 toretrieve the first value of the fluctuating parameter from memory 108when the customer stages a subsequent money transfer at money-transfersystem 100. The repeat customer identifier may also be computer-readablecode that can be used by host processor 107 to retrieve from memory 108the lock-in value identifier that is associated with a particular repeatcustomer. The identifiers may be manually entered into memory 108, maybe read from a card (e.g., magnetic stripe), may be read by or from awireless device (e.g., by RFID) or may be automatically stored in memory108 by host processor 107. At block 205, the terms of the money transferstaged at block 202, including the first value of the fluctuatingparameter determined at block 203, may then be used to execute the firstmoney transfer using money transfer system 100.

At some time subsequent to the first money transfer executed at block205, the same customer may visit a money-transfer site at block 206. Insome embodiments, the repeat customer identifier may be used todetermine that the customer who stages the second money transfer atblock 207 is the same customer that staged the first money transfer atblock 202. The money-transfer site may be the same or different than themoney-transfer site that the customer visited at block 201, but the siteis a part of or in communication with money transfer system 100. Atblock 207, information may be received from the customer atmoney-transfer system 100 to stage a second money transfer, the terms ofwhich may include the same fluctuating parameter as in the first moneytransfer. At block 208, a second value of the fluctuating parameter maybe determined at a second point in time, e.g. at the time the secondmoney transfer is staged at block 207. At block 209, the first value ofthe fluctuating parameter stored in memory 108 at block 204 may beretrieved by processor 107 using the lock-in value identifier. In someembodiments, the repeat customer identifier may be used to retrieve thelock-in value identifier at block 209 if the repeat customer identifierwas stored in association with the lock-in value identifier at block204.

The fluctuating parameter may be locked-in by a customer for a specifiedperiod of time, a specific number of transfers, or both (e.g., the nextthree transfers before a specific date) and can relate to futuretransactions involving exchange of the same currencies (e.g., samesend-receive corridor) or can relate to the exchange of differentcurrencies, either within a particular receive region of the world or toany country in the world.

In one embodiment, host processor 107 may compare the retrieved firstvalue with the second value of the fluctuating parameter determined atblock 208. A determination may be made by host processor 107 at block210 as to whether the first value of the fluctuating parameter is morefavorable for the customer to use for the execution of the second moneytransfer than the second value. The terms of the money transfer stagedat block 207, including the more favorable value of the fluctuatingparameter determined at block 210, may then be used to execute thesecond money transfer at block 211 using money transfer system 100. Thecustomer may make any number or a specified number of subsequent moneytransfers using the process represented by blocks 206-211 and be assuredthat the value of the fluctuating parameter used to execute thesubsequent money transfers will be no less favorable than the value usedfor the first money transfer. In some embodiments, the customer may berequired to pay an additional lock-in fee or fees for this assurance.

At block 212, processor 107 may be configured to calculate the amount ofsavings, the more favorable amount of funds to be received at areceiving destination, or a combination of both (“amount of benefit”)realized as the result of using the more favorable value of thefluctuating parameter to execute the money transfer at block 211. Thecustomer may then be notified of the amount of benefit at block 213 byany suitable means incorporated into money-transfer system 100. Forexample, the customer may be notified of the amount of benefit by aclerk as the result of information displayed on a money-transferterminal 103, the amount of benefit may be printed on the customer'sreceipt evidencing the money transfer, the amount of benefit may bedisplayed on the screen of computational device 105, the amount ofbenefit could be communicated to the customer by email or otherelectronic means (including via RFID to a mobile device).

FIG. 3 illustrates a process 300 that may be used in accordance with theinvention for a plurality of money transfers involving two currenciesthat have a fluctuating exchange rate. At block 301, a customer mayvisit a money-transfer site of money transfer system 100 and informationmay be received from the customer at money-transfer system 100 to stagea money transfer at block 302. In staging the money transfer, thecustomer may provide a number of specifications, including the amount ofmoney to be transferred, the identity of the customer (which may beaccomplished using a repeat customer identifier), the identity of therecipient of the money transfer, and the location to which the money isto be transferred, which may or may not be in another country. Thecustomer may also specify the currency in which the money to betransferred is supplied (“first currency”), and the currency in whichthe money transferred is to be received (“second currency”). In oneembodiment, the customer may also specify the manner in which the firstcurrency is to be converted into the second currency. For example, ifthe customer wishes to transfer 100 U.S. Dollars to a recipient inMexico, and to have the Mexican recipient receive the transferred moneyin Mexican pesos, the recipient will receive 1000 Mexican Pesos if theexchange rate that applies to the transfer is 10 pesos/US$.Alternatively, the recipient would receive 900 Mexican Pesos if theapplicable exchange rate is 9 pesos/US$. In another embodiment, customermay stage the money transfer in terms of the amount to be received bythe recipient in the second currency, such as by specifying that 1000Mexican Pesos are to be transferred. An amount in U.S. Dollars that isequivalent to 1000 Mexican pesos using the applicable exchange rate maythen be collected from the customer for the money transfer.

The applicable exchange rate for the money transfer staged at block 303may be identified as the “current exchange rate”, which in oneembodiment may be the exchange rate in effect at the time the moneytransfer is staged at block 302. In other embodiments, the currentexchange rate may be the exchange rate in effect at the time the fundsto be transferred are collected from the customer. In still otherembodiments, the current exchange rate may be the exchange rate ineffect at the time the funds are transferred or picked up by therecipient, or may be a specific exchange rate agreed upon between thecustomer and the money-transfer service provider, or derived internallyby the money-transfer service provider. For example, the currentexchange rate may be different than the wholesale exchange rate paid bythe service provider to purchase the currency. In any event, hostprocessor 107 may be configured to determine at block 303 the currentexchange rate that is to be used to convert the first to the secondcurrencies in connection with the money transfer staged at block 302. Asone example, host processor may determine the current exchange rate atthe time the money transfer is staged, e.g. through access to an on-linemonitoring service or a subscription database.

At block 304, a determination may be made as to whether the moneytransfer staged at block 302 is a “repeat transaction” by the customer.For example, the customer or the service provider may designate themoney transfer as a repeat transaction and enter this designation intomoney transfer system 100 during the staging process at block 302, e.g.using a money transfer terminal device 103 or through a computationalterminal device 105. As previously mentioned, in some embodiments thecustomer may be identified by a “repeat customer identifier”, which isused by processor 107 to identify that the money transfer being stagedat block 302 is a repeat transaction. This determination may be made byhost processor 107 by searching the customer's staging information forthe presence of the repeat customer identifier. The repeat customeridentifier may be an identification number assigned by the serviceprovider to preferred or returning customers, e.g. those thatparticipate in the service provider's loyalty program or have executedor are expected to execute multiple money transfers. Alternatively,processor 107 may automatically create and store the repeat customeridentifier in association with the lock-in exchange rate identifier atblock 306 in memory 108, as discussed below.

A “repeat transaction” may be defined for the purposes of thisdescription as any money transfer by the same customer within aspecified period of time, e.g. as specified by the money transferservice provider, wherein the customer's subsequent money transferinvolves the same fluctuating parameter as the first money transfer,e.g. the exchange rate between a first currency and second currency. Arepeat transaction may involve the same or different amounts of money,the same or different recipients, and/or the same or differentdestination locations as the first money transfer.

If the determination at block 304 is that the staged money transfer isnot a repeat transaction, host processor 107 may be configured to querythe customer at block 305, e.g. using money transfer terminal device103, if the customer wants to fix or “lock-in” the current exchange ratedetermined at block 303 so that it will apply to repeat transactions. Ifthe customer chooses to lock-in the current exchange rate at block 305,host processor 107 may be configured to store a unique identifier inmemory 108 at block 306 that associates the current exchange ratedetermined at block 303 with the customer (“lock-in exchange rateidentifier”) and sets that current exchange rate as the lock-in exchangerate for repeat transactions of the customer. Processor 107 may alsostore a repeat customer identifier in memory 108 as a means ofretrieving the lock-in exchange rate identifier during a repeattransaction. At block 307, the appropriate amount of funds may then becollected from the customer based on the current exchange ratedetermined at block 303. At block 308, the customer may pay anappropriate service fee for the money transfer staged at block 302,which may include an additional amount for the lock-in privilege(“lock-in fee”). In some cases, there may be no lock-in fee. Forexample, a service provider may choose not to charge a lock-in fee toloyalty program members, to customers who send a certain principalamount and/or pay fees above a certain threshold; or to customers whosend from select locations or geographic areas, who send to certainexpected payout locations, or whose transactions relate to certainsend-receive corridors. At block 309, the funds may be converted fromthe first currency to the second currency using the current exchangerate.

If the determination at block 304 is that the money transfer staged atblock 302 is a repeat transaction, e.g. by detecting the repeat customeridentifier, host processor 107 may be configured to retrieve the lock-inexchange rate at block 310, e.g. by using the repeat customer identifierto retrieve the lock-in exchange rate identifier stored in memory 108 atblock 306 in connection with a previous money transfer. In a preferredembodiment, processor 107 may then determine at block 311 whether thelock-in exchange rate is more or less favorable for the customer in themoney transfer staged at block 302 than the current exchange ratedetermined at block 303. In another embodiment, a comparison with thecurrent exchange rate may not made at block 311. If the lock-in exchangerate is determined at block 311 to be more favorable than the currentexchange rate determined at block 303 or if a comparison with thecurrent exchange rate is not made at block 311, the appropriate amountof funds may be collected from the customer at block 312 based on thelock-in exchange rate, and the customer may pay the appropriate servicefee at block 313 for the money transfer staged at block 302.

Optionally, some or all of the lock-in fee paid at block 308 for thefirst money transfer by the customer may be applied against the servicefee paid at block 313 for a repeat money transfer, as indicated by thedotted line between blocks 308 and 313 and/or may be applied against thecurrency spread; i.e. the difference between the wholesale exchange ratepaid by the service provider and the retail exchange rate the serviceprovider offers to customers. The funds may then be converted from thefirst currency to the second currency at block 314 using the lock-inexchange rate. The converted funds may then transferred to the recipientat block 315 using money transfer system 100.

If it is determined at block 311 that the lock-in exchange rate is notmore favorable than the current exchange rate, i.e. if the currentexchange rate is equal to or less than the lock-in exchange rate, or ifa lock-in rate is not established at block 305, funds may be collectedfrom the customer based on the current exchange rate, as indicated inblock 307, the appropriate service fee for the money transfer may bepaid at block 308 (without a lock-in fee), and the funds may beconverted at block 309 from the first currency to the second currencyusing the current exchange rate. Some or all of the lock-in fee paid atblock 308 for the first money transfer by the customer may optionally beused to offset service fees paid at block 308 for repeat moneytransfers, even if funds are converted at block 309 using the currentexchange rate. The converted funds may be transferred to the recipientat block 315 using money transfer system 100.

In one embodiment, process 300 may include steps designed to reduce therisk associated with setting the lock-in exchange rate for one or morecustomer's repeat transactions. For example, at block 316, the lock-inexchange rate stored at block 306 for each repeat customer, or anaggregate and net exchange rate for a plurality of repeat customers, maybe processed by processor 107 and periodically stored in memory 108. Atblock 317, the information processed at block 316 may be transferred tothe money-transfer service provider, and at block 318 a person or systemat the service provider may hedge the risk created by the lock-inexchange rate(s). As one example, the money transfer service providermay hedge the risk by purchasing a foreign exchange option that givesthe service provider the right to use the lock-in exchange rate when itconverts funds at block 314 from the first currency to the secondcurrency during repeat transactions. The service provider may or may notexercise the option right depending on the determination made at block311 as to whether the lock-in exchange rate is more favorable than thecurrent exchange rate. If the lock-in exchange rate is more favorable,the service provider may exercise the right to purchase the requiredfunds in the second currency at the lock-in exchange rate for theconversion at block 314, thereby avoiding the necessity of purchasingthe funds at the higher current exchange rate. If the lock-in exchangerate is less favorable, the service provider will not exercise theoption and will effect the conversion at block 309 using the currentexchange rate. As another example, the service provider may hedge therisk by purchasing an outright forward exchange contract at the lock-inexchange rate if the amount and time period of the conversions from thefirst currency to the second currency for one or more customer's repeatmoney transfers is known.

As previously described, the customer usually pays for the staged moneytransfer by paying a service fee in addition to the amount of money thatis to be transferred. Payment may be made in a variety of different waysin different embodiments, including by cash, by credit card or account,by debit card or account, by automated clearing house, by check, bystored-value card or account, or by any other suitable paymentmechanism. From time to time, the money transfer service provider maychange the service fee and therefore the same service fee may not becharged to the customer for subsequent money transfers withsubstantially the same terms. The present invention may be used toassure the customer that the service fee charged by the service providerwill be no greater for subsequent money transfers than the service feepaid for the first money transfer.

For example, FIG. 4 illustrates a process 400, similar to process 200described in FIG. 2, wherein the fluctuating parameter is the servicefee paid by the customer for the money transfer staged at block 202.Referring to FIG. 4, the customer may visit a money-transfer site atblock 401 and stage a first money transfer at block 402, as previousdescribed in connection with FIG. 2. Processor 107 may determine atblock 403 the amount of the current service fee paid for the moneytransfer staged by the customer at block 402. At block 404, a uniqueidentifier may be stored in memory 108 of processor 107 that associatesthe customer with the terms of the money transfer staged at block 402(“service fee lock-in value identifier”) and the amount of the currentservice fee paid in connection therewith (“first service fee amount”).The customer may then be charged the first service fee amount at block405 and the money transfer staged at block 402 may be executed at block406 according to its terms.

At some time subsequent to the first money transfer executed at block406, the same customer may visit a money-transfer site at block 407 andstage a money transfer at block 408 having substantially the same termsas the first money transfer staged at block 402. At block 409, processor107 may determine the amount of the then current service fee charged forthe second money transfer staged at block 408. In one embodiment,processor 107 may designate the then current service fee as the “secondservice fee amount”. Alternatively, processor 107 may be configured tocalculate the second service fee amount by subtracting all or anyportion of the lock-in fee paid at block 308 (FIG. 3) from the thencurrent service fee charged for the second money transfer staged atblock 408.

At block 410, the service fee lock-in value identifier stored at block404 may be used by processor 107 to retrieve the first service feeamount from memory 108 and compare it with the second service feeamount. Processor 107 may determine the more favorable service feeamount for the customer at block 411 and the customer may be charged themore favorable service fee amount at block 412 for the second moneytransfer. At block 413, the second money transfer may be executed usingmoney-transfer system 100.

In another embodiment, a process similar to process 200 (FIG. 2) andprocess 400 (FIG. 4) may be provided wherein the fluctuating parameteris the currency spread used by the service provider to provide funds forthe money transfer. For example, processor 107 may be configured tocalculate the amount of the currency spread used for the first moneytransfer. A unique identifier may be stored in memory 108 of processor107 that associates the customer with the amount of the currency spreadused in connection with the first money transfer. Processor 107 may thendetermine the amount of the currency spread used by the service providerto provide funds for the second money transfer, retrieve the amount ofthe currency spread used for the first money transfer using the uniqueidentifier, and compare the amounts of the two currency spreads. In oneembodiment, processor 107 may determine the more favorable currencyspread and use the more favorable currency spread for the second moneytransfer. Alternatively, all or any portion of the currency spread usedfor the second money transfer may be applied as a discount against thesecond service fee amount. The money transfer provider (or anotherforeign exchange provider) may charge the customer a fee for the abilityto take advantage of the more favorable currency spread, or to share inthe more favorable currency spread through a discount in the secondservice fee.

Thus, having described several embodiments, it will be recognized bythose of skill in the art that various modifications, alternativeconstructions, and equivalents may be used without departing from thespirit of the invention. Accordingly, the above description should notbe taken as limiting the scope of the invention, which is defined in thefollowing claims:

1. A method for executing a plurality of money transfers, the methodcomprising: providing a money-transfer system having a host processorwith associated memory, wherein the money transfer system is operated bya service provider; receiving from a customer at the money-transfersystem information related to—a first money transfer to be executed bythe service provider; wherein at least one term of the money transfer isdependent on the value of a fluctuating parameter; determining a firstvalue of the fluctuating parameter at a first point in time; configuringthe host computer to: execute the first money transfer with themoney-transfer system using the first value of the fluctuatingparameter; and store in the host processor's memory a unique lock-invalue identifier that associates the first value of the fluctuatingparameter with the customer; receiving from the same customer at themoney-transfer system information related to a second money transfer tobe executed by the service provider, wherein at least one of the termsof the second money transfer is dependent on the value of thefluctuating parameter; determining a second value of the fluctuatingparameter at a second point in time; configuring the host computer to:retrieve the first value of the fluctuating parameter from the hostprocessor's memory using the lock-in value identifier; determine whetherthe first value or the second value of the fluctuating parameter is morefavorable to the customer for executing the second money transfer; andexecute the second money transfer with the money-transfer system usingthe more favorable value of the fluctuating parameter; wherein the riskof loss associated with using the more favorable value of thefluctuating parameter is assumed by the service provider.
 2. A method asrecited in claim 1 further comprising configuring the host computer toassociate a unique repeat customer identifier with the customer and touse the repeat customer identifier to determine that the second moneytransfer customer is the same as the first money transfer customer.
 3. Amethod as recited in claim 2 further comprising configuring the hostcomputer to associate the repeat customer identifier with the lock-invalue identifier when the lock-in value identifier is stored in the hostprocessor's memory, and to use the repeat customer identifier toretrieve the lock-in value identifier.
 4. A method as recited in claim 1further comprising notifying the customer of the amount of benefitrealized by using the more favorable value of the fluctuating parameterto execute the second money transfer.
 5. A method as recited in claim 1wherein the fluctuating parameter is the exchange rate between a firstcurrency in which funds are provided by the customer and a secondcurrency in which funds are received at a receiving destination, aservice fee charged to the customer for executing a money transfer, orthe currency spread between the wholesale exchange rate paid by theservice provider and the retail exchange rate the service provideroffers to customers. 6-7. (canceled)
 8. A method of transferring money,the method comprising: providing a money-transfer system having a hostprocessor with associated memory, wherein the money transfer system isoperated by a service provider; receiving from a customer at themoney-transfer system information related to a money transfer to beexecuted by the service provider, wherein at least one of the terms ofthe money transfer is dependent on the value of a fluctuating parameter;determining the current value of the fluctuating parameter; configuringthe host processor to: determine determining whether the staged moneytransfer is a repeat transaction of the customer with the serviceprovider; if the money transfer is not a repeat transaction, store inthe host processor's memory a unique lock-in value identifier thatdesignates the current value of the fluctuating parameter as the lock-invalue of the fluctuating parameter for at least one repeat transactionof the customer; and if the money transfer is a repeat transaction ofthe customer, retrieve the lock-in value identifier from the hostprocessor's memory for use in determining the value of the fluctuatingparameter to be used in the repeat money transfer.
 9. A method asrecited in claim 8 farther comprising the steps of: configuring the hostcomputer to determine whether the lock-in value of the fluctuatingparameter is more favorable than the current value; and if the lock-invalue is more favorable, to execute the money transfer using the lock-invalue; and if the lock-in value is not more favorable, to execute themoney transfer using the current value; wherein the risk of lossassociated with using the lock-in value of the fluctuating parameter forthe repeat money transfer is assumed by the service provider.
 10. Amethod as recited in claim 8 further comprising configuring the hostcomputer to search the customer information for a unique repeat customeridentifier to determine whether the money transfer is a repeattransaction of the customer.
 11. A method as recited in claim 10 whereinthe host computer is configured to store a repeat customer identifier inthe host processor's memory in association with the lock-in valueidentifier if the money transfer is not a repeat transaction of thecustomer.
 12. A method as recited in claim 10 wherein the host computeris configured to use the repeat customer identifier to retrieve thelock-in value identifier from the host processor's memory if the moneytransfer is a repeat transaction.
 13. A method as recited in claim 8wherein the fluctuating parameter is the exchange rate between a firstcurrency in which funds are provided by the customer and a secondcurrency in which funds are received at a receiving destination, aservice fee charged to the customer for executing the money transfer, orthe currency spread between the wholesale exchange rate paid by theservice provider and the retail exchange rate the service provideroffers to customers. 14-15. (canceled)
 16. A method of executing aplurality of money transfers, the method comprising; providing amoney-transfer system having a host processor with associated memory,wherein said money transfer system is operated by a service provider;receiving from a customer at the money-transfer system informationrelated to a first money transfer to be executed by the serviceprovider, wherein the information includes specification of an amount ofmoney to be transferred, a first currency in which the funds are to beprovided by the customer, and a second currency different from the firstcurrency in which the funds are to be received at a receivingdestination; determining a first exchange rate between the firstcurrency and the second currency at a time associated with the firstmoney transfer; collecting the appropriate amount of funds from thecustomer in the first currency based on the first exchange rate;configuring the host computer to: convert the funds from the firstcurrency to the second currency using the first exchange rate; transferthe converted funds to the receiving destination of the first moneytransfer using the money-transfer system; and store in the hostprocessor's memory a unique repeat customer identifier that identifiesthe customer as a repeat customer and a unique lock-in exchange rateidentifier that sets the first exchange rate as the lock-in exchangerate and associates the lock-in exchange rate with the repeat customeridentifier; receiving information at the money-transfer system relatedto a second money transfer, wherein the information includes the repeatcustomer identifier and specifies that funds are to be provided by thecustomer in the first currency and that funds are to be received at areceiving destination in the second currency; determining a currentexchange rate between the first currency and the second currency at atime associated with the second money transfer; configuring the hostcomputer to: retrieve the lock-in exchange rate from the money transfersystem by using the repeat customer identifier to retrieve the lock-inexchange rate identifier; and determine whether the lock-in exchangerate or the current exchange rate is more favorable to the customer forthe second money transfer; collecting the appropriate amount of fundsfrom the customer in the first currency for the second money transferbased on the more favorable exchange rate; converting the funds from thefirst currency to the second currency using the more favorable exchangerate; and transferring the converted funds to the receiving destinationof the second money transfer using the money-transfer system; whereinthe service provider assumes the risk of loss associated with thelock-in exchange rate.
 17. A method as recited in claim 16 wherein thereceiving destination of the first and/or second money transfer is in acountry different than the country in which the funds are provided. 18.A method as recited in claim 16 further comprising: determining aservice fee of a first amount at a time associated with the first moneytransfer; collecting from the customer the first service fee amount plusa lock-in fee amount; configuring the host computer to: associate thefirst service fee amount with a service fee lock-in value identifier andthe repeat customer identifier, and to store the association in the hostprocessor's memory; determining a service fee of a second amount at atime associated with the second money transfer; configuring the hostcomputer to: retrieve first service fee amount from the host processor'smemory using the repeat customer identifier to retrieve the service feelock-in value identifier; and determine whether the first service feeamount or the second service fee amount is more favorable to thecustomer for executing the second money transfer; and collecting themore favorable service fee amount from the customer for executing thesecond money transfer.
 19. A method as recited in claim 18 wherein thelock-in fee amount, or all or a portion of any currency spread in themore favorable exchange rate, is subtracted from the more favorableservice fee before the service fee is collected from the customer forthe second money transfer.
 20. (canceled)
 21. A method as recited inclaim 16 wherein the service provider hedges the foreign exchange riskassociated with the lock-in exchange rate.
 22. A system for executing aplurality of money transfers through a service provider, the systemcomprising: one or more terminal devices adapted to input money transferinformation regarding a customer and/or to receive the transferred fundsat a receiving destination; a host processor with associated memoryadapted to process the money transfer and money transfer information;and a money-transfer network adapted to provide a communicationsinterface between the terminal devices and the host processor; whereinthe host processor is configured to: receive customer information fromone of the terminal devices related to a first money transfer; whereinat least one of the terms of the first money transfer is dependent onthe value of a fluctuating parameter; determine a first value of thefluctuating parameter at a first point in time; store in the processor'smemory a unique lock-in value identifier that associates the first valueof the fluctuating parameter with the customer; receive information fromone of the terminal devices regarding a second money transfer by thesame customer, wherein at least one of the terms of the second moneytransfer is dependent on the value of the fluctuating parameter;determine a second value of the fluctuating parameter at a second pointin time; retrieve the first value of the fluctuating parameter from theprocessor's memory using the lock-in value identifier; determine whetherthe first value or the second value of the fluctuating parameter is morefavorable to the customer for executing the second money transfer; andexecute the second money transfer through the money-transfer systemusing the more favorable value of the fluctuating parameter; and chargeto the service provider any loss associated with the use of the morefavorable value.
 23. A system as recited in claim 22 wherein the hostprocessor is further configured to associate a unique repeat customeridentifier with the lock-in value identifier when the lock-in valueidentifier is stored in the host processor's memory, and to search thecustomer information related to the second money transfer for the repeatcustomer identifier to determine that the second money transfer customeris the same as the first money transfer customer.
 24. A system asrecited in claim 23 wherein the host processor is further configured touse the repeat customer identifier to retrieve the lock-in valueidentifier.
 25. A system as recited in claim 22 wherein the fluctuatingparameter is the exchange rate between a first currency in which fundsare provided by the customer and a second currency in which funds arereceived, a service fee charged to the customer for executing the moneytransfer, or the currency spread between the wholesale exchange ratepaid by the service provider and the retail exchange rate the serviceprovider offers to customers. 26-27. (canceled)
 28. A system fortransferring money through a service provider, the system comprising:one or more terminal devices adapted to input money transfer informationrelating to a customer and/or receive the transferred funds at areceiving destination; a host processor with associated memory adaptedto process the money transfer and money transfer information; and amoney-transfer network adapted to provide a communications interfacebetween the terminal devices and the host processor; wherein the hostprocessor is configured to: receive customer information from one of theterminal devices related to a money transfer to be executed by theservice provider; wherein at least one of the terms of the moneytransfer is dependent on the value of a fluctuating parameter; determinethe current value of the fluctuating parameter; determine whether themoney transfer is a repeat transaction of the customer with the serviceprovider by searching the customer information for a unique repeatcustomer identifier; if the money transfer is not a repeat transaction,store a unique repeat customer identifier in the host processor's memoryin association with a lock-in value identifier that designates thecurrent value of the fluctuating parameter as the lock-in value of thefluctuating parameter for repeat transactions of the customer with theservice provider; and if the staged money transfer is a repeattransaction, use the repeat customer identifier to retrieve the lock-invalue identifier from the host processor's memory for use in determiningthe value of the fluctuating parameter to be used in the repeat moneytransfer.
 29. A system as recited in claim 28 wherein the host processoris further configured to determine whether the lock-in value of thefluctuating parameter is more favorable than the current value; and ifthe lock-in value is more favorable, execute the money transfer usingthe lock-in value; and if the lock-in value is not more favorable,execute the money transfer using the current value; and charge any lossassociated with using the lock-in value of the fluctuating parameter tothe service provider.
 30. A system as recited in claim 29 furthercomprising means for notifying the customer of the amount of benefitrealized by using the more favorable value of the fluctuating parameterto execute the second money transfer.
 31. A system as recited in claim28 wherein the fluctuating parameter is the exchange rate between afirst currency in which funds are provided by the customer and a secondcurrency in which funds are received, a service fee charged to thecustomer for executing the money transfer, or the currency spreadbetween the wholesale exchange rate paid by the service provider and theretail exchange rate the service provider offers to customers. 32-34.(canceled)
 35. A system as recited in claim 28 comprising one or moremobile terminal devices.